Sale and Lease Back:

A Sale and Lease Back transaction involves the sale of an asset by the vendor and the leasing of the same asset back to the vendor. The lease payment and the sale price are usually interdependent as they are usually negotiable as a package.

Sale and Lease Back transaction is one where a customer has an existing asset to be leased from FNBM. In this case, FNBM makes payments to Customer instead of Supplier. The Customer sells its existing Assets to FNBM at market cost price and simultaneously gets the same leased back from FNBM. Resultantly, the customer effectively gets financing for assets already under its ownership and use. However, refinancing of Assets owned by the Customer in Sale and Lease Back transaction is allowed under certain circumstances. Repayment consists of fixed or variable monthly, quarterly or semiannually rentals which can also be structured in accordance with the cash flows of the customer.

The customer is obliged to purchase the Leased Asset from FNBM at the time of maturity / expiry of the Lease Contract at an agreed Residual Value which forms the sale price and ownership of the asset transferred back to the customer.

Benefits of Availing Financing Facilities from FNBM:

Financing with Rs.50 M with complete adherence to Shariah.

The terms and conditions are flexible and can be customized for the customer.

Prompt approval process subject to completion of documents required for the approval.

Competitive profit margins with fixed as well as variable profit rates.

Profits are not collected in advance.

Flexible Principal Repayments according to the cash flows of the customer.

Transactions and pricing are fully transparent with no hidden charges.

Eligibility Criteria for Auto Financing

Individuals working in government sector, Semi-Government and statutory bodies.

Self Employed Professionals.

For Corporate Finance

All Private and Public Limited Companies with clean CIB and having selected financial ratios as per prudential regulations.